HK Stock Market Move | Shipping stocks fell across the board as shipping companies continued to lower freight rates for the first half of September. Bank of America pointed out that the market is ignoring the headwinds facing the industry in the next two years.

All shipping stocks fell across the board. As of the time of writing, OOIL (00316) dropped 4.29%, at HKD 147.1; COSCO Shipping Holdings (01919) fell 3.87%, at HKD 16.63; SITC (01308) decreased 3.65%, at HKD 43.3; and TS LINES (02510) declined 2.81%, at HKD 13.14. In terms of news, according to data from the Shanghai Shipping Exchange, as of August 31, the Shanghai Export Container Settlement Freight Index (European route) stood at 3047.62 points, down 5.9% compared to the previous period. Shanghai Dongya Futures pointed out that shipping companies continue to lower freight rates for the first half of September. Maersk continues to maintain a normal rate of price reduction anticipated by the market, lowering rates by USD 200 week-on-week. In the short term, the market is trading on congestion at East China ports and rising freight rates on other routes. However, overall, the 10 contracts are still contending with the price reduction rhythm in the off-season, with certain pressures above. Bank of America Securities released a research report stating that COSCO Shipping Holdings' net profit and shareholder returns for the first half of the year met the bank's expectations. Benefiting from strong demand and port congestion supporting high freight rates, the companys profit outlook for the second half of the year is strong. However, the short-term profit strength has already been fully reflected in the valuation, and the market has overlooked the gradually intensifying industry headwinds for the fiscal years 2027 to 2028. Therefore, the target price for the company has been raised from HKD 12.5 to HKD 13.5, but the rating is reiterated as "underperforming the market."